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China Information Technology Development (HKSE:08178) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
China Information Technology Development Quick Ratio Related Terms
China Information Technology Development Quick Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
China Information Technology Development Quick Ratio Chart
China Information Technology Development Annual Data
HKSE:08178 vs IBM, ACN, FISV: Quick Ratio Comparison
For the Information Technology Services subindustry, China Information Technology Development's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
China Information Technology Development Quick Ratio vs Software Industry
China Information Technology Development Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
China Information Technology Development (HKSE:08178) has a Quick Ratio of 1.06 as of Dec. 2025. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on China Information Technology Development and its competitors. This is 16% below median its historical median of 1.26. Over the past decade, China Information Technology Development's Quick Ratio has ranged from 0.87 to 2.01. According to the industry distribution chart, China Information Technology Development ranks #2124 out of 2879 companies in the Software industry, placing it in the top 73.8%.
Is China Information Technology Development's Quick Ratio too high?
China Information Technology Development's current Quick Ratio of 1.06 is 16% below median its 10-year median of 1.26. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 2.01. The Software industry median Quick Ratio is 1.69. China Information Technology Development's value of 1.06 is 37.3% below this industry median. Based on the distribution chart, China Information Technology Development ranks #2124 out of 2879 companies in the Software industry, which is below the industry midpoint. Overall, China Information Technology Development has a GF Score™ of 29/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Information Technology Development's Quick Ratio compare to IBM and ACN?
According to the Software industry distribution chart, China Information Technology Development ranks #2124 out of 2879 companies for Quick Ratio. This places China Information Technology Development in the lower half of its industry. The industry median Quick Ratio is 1.69. China Information Technology Development's value of 1.06 is 37.3% below this benchmark. Historically, China Information Technology Development's own Quick Ratio has ranged from 0.87 to 2.01 over the past decade. While the company's 10-year median is 1.26 vs. the industry median of 1.69, China Information Technology Development has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for a Software company?
The median Quick Ratio among Software companies is 1.69, based on 2,879 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Information Technology Development's current Quick Ratio of 1.06 is 37.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on China Information Technology Development and its competitors. For the Software industry, the median Quick Ratio is 1.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Information Technology Development's current Quick Ratio is 1.06, which is 16% below median its own 10-year median of 1.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Information Technology Development stock overvalued right now?
Based on GuruFocus' analysis, China Information Technology Development (HKSE:08178) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.70, compared to a current price of HK$0.18 — trading 74.6% below its estimated fair value. The current Quick Ratio is 1.06, which is 16% below median its 10-year median of 1.26 and 37.3% below the Software industry median of 1.69. China Information Technology Development's overall GF Score™ is 29/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For China Information Technology Development (HKSE:08178), the current Quick Ratio is 1.06 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is China Information Technology Development (HKSE:08178) Overvalued in 2026?
Based on GuruFocus' analysis, China Information Technology Development stock appears to be undervalued.
The current stock price of HK$0.18 is trading 74.6% below its estimated GF Value™ of HK$0.70.
GuruFocus considers China Information Technology Development to be Possible Value Trap.
Key valuation signals for HKSE:08178:
Quick Ratio: 1.06 (16% below median its 10-year median of 1.26)
GF Value™: HK$0.70 vs. price of HK$0.18 (74.6% below fair value)
Industry Position: 37.3% below the Software median (#2124 of 2879)
No single metric tells the full story. See the HKSE:08178 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Information Technology Development Ltd is an investment holding company. The company and its subsidiaries are principally engaged in provision of system integration and related support services, provision of IT infrastructure solutions and maintenance services, rental of properties and securities trading. It operates in three reportable segments: i) provision of IT infrastructure solutions and maintenance services (IT solutions and maintenance); ii) securities investments; and iii) rental of properties. It generates the majority of revenue from the IT solutions and maintenance segment. Geographically, the maximum revenue is generated from Hong Kong and the rest from the PRC except Hong Kong.
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